Title
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement, including a lease amendment, for a portion of the premises at 1341 N. Delaware Ave. for general office and administrative use by the City, all under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. The Commissioner of Public Property is hereby authorized, on behalf of the City of Philadelphia, to enter into a multi-year lease and related agreements, including a lease amendment, with the City as tenant, for general office and administrative use of all or a portion of the premises generally referred to as 1341 N. Delaware Ave., pursuant to terms substantially set forth in Exhibit A.
SECTION 2. The Commissioner of Public Property is hereby authorized to take all actions deemed by the Commissioner to be necessary and appropriate to carry out the provisions and intent of this Ordinance, including executing and amending any and all instruments and ancillary documents that are necessary and appropriate.
SECTION 3. The City Solicitor is hereby authorized to review, negotiate, amend and approve the various leases, lease amendments and all other instruments and documents necessary and appropriate to effectuate this Ordinance, which leases, lease amendments, instruments and documents shall contain such terms and conditions as the City Solicitor shall deem necessary, desirable, and proper to protect the interests of the City of Philadelphia.
EXHIBIT A
Terms of Proposed Lease Amendment
For 1341 N. Delaware Ave.
1. Landlord: Penn Treaty Venture LLC.
2. Tenant: City of Philadelphia.
3. Premises Address: 1341 N. Delaware Ave., Philadelphia, PA 19125.
4. Use of the Premises: General office and administrative purposes, and any associated use customarily incidental to conducting the City’s functions in office buildings.
5. Term of Lease Amendment: Ten (10) years, provided that, in accordance with Section 8-200(3) of the Philadelphia Home Rule Charter, the City shall have the right to terminate the Lease, at the City’s sole option, at any time after the expiration of four (4) years without liability to the Landlord for damages or loss of profits which would have been realized had the lease not been terminated.
6. Renewal Term: The City shall have the option to renew the amended lease for one (1) five (5) year term.
7. Special Terms: Tenant shall continue to occupy an office suite with approximately 3,749 rentable square feet pursuant to a Master Lease dated October 30, 1996, and First Amendment to Lease dated May 24, 2010. On or around July 1, 2026, Tenant will be relocating from another office suite containing approximately 3,921 rentable square feet to a larger office suite containing approximately 9,000 rentable square feet, and the Premises will contain a total of approximately 12,749 rentable square feet.
8. Rent: Base rent during Lease Amendment Year 1 will be $18.00 per rentable square foot and shall escalate annually at rate of approximately 2% for each successive year of the Term of the Lease Amendment and the Renewal Term. The total base rent for Lease Amendment Year 1 will be $229,482.00.
9. Utilities: The City shall pay directly through City’s own accounts, or, if not billed directly, shall reimburse Landlord the cost of utilities paid on City’s behalf.
10. Operating Expenses: The Base Rent shall be inclusive of all Landlord’s Operating Expenses.
11. Tenant Improvements: Landlord shall fit out the Premises based on a mutually accepted space plan and deliver the 9,000 square foot office suite turnkey.
..End